Is Freedom Debt Relief Legit? Here’s an honest look at one of America’s largest debt settlement companies. This review follows reviews we have done of other similar companies such as New Era Debt, Family Credit Management, Cura Debt and Turbo Debt. Ultimately, all these debt relief companies offer similar services, so we recommend that you shop around and check the rates you get from different companies. Don’t just pick the first one.
Overview of the Company
Freedom Debt Relief (FDR) is one of the most established debt settlement firms in the U.S., helping clients resolve over $15 billion in debt since 2002. Headquartered in San Mateo, CA, it serves clients nationwide (excluding a few states) and focuses on unsecured debt such as credit card balances and medical bills.
- Founded: 2002
- Headquarters: San Mateo, CA
- Website: www.freedomdebtrelief.com
- Minimum Debt: $10,000
- Fees: 15%–25% of enrolled debt
- Accreditations: AADR, IAPDA, BBB A+
Key Services Offered
- Free debt consultation
- Custom settlement plans
- Creditor negotiation
- Online dashboard
- Dedicated support team
Pros & Cons
| Pros | Cons |
|---|---|
| ✅ One of the most experienced firms | ❌ Credit score may drop during program |
| ✅ No upfront fees | ❌ Not available in every state |
| ✅ Strong client support & dashboard | ❌ May receive frequent sales calls |
| ✅ Accredited by major associations | ❌ Not suitable for secured or tax debt |
Ratings & Reviews Summary
| Source | Rating | Highlights |
|---|---|---|
| BBB | A+ / 4.47★ | Strong transparency record |
| TrustPilot | 4.6★ (42,000+) | Customer service and results praised |
| Google Reviews | 4.7★ | Generally positive, some delays noted |
Please check the most current ratings from these review sites as they may have changed since we wrote this review.
How It Works
- Start with a free consultation
- Enroll in a custom settlement plan
- Deposit monthly into a secure account
- FDR negotiates with creditors on your behalf
- You approve and pay reduced settlements
- Graduate after debts are resolved (24–48 months)
Is It Right for You?
Great for:
- Anyone with $10k+ in unsecured debt
- People seeking a big, reputable brand
- Those needing hands-on guidance and a support team
Not ideal for:
- Consumers with secured debt or IRS tax issues
- People living in restricted states
- Anyone seeking a DIY or consolidation loan approach
💬 Frequently Asked Questions About Freedom Debt Relief
1. What does Freedom Debt Relief do?
Freedom Debt Relief helps consumers settle unsecured debts—primarily credit card balances—by negotiating directly with creditors to reduce the total amount owed. They create customized programs based on your debt, income, and hardship.
2. Is Freedom Debt Relief legit?
Yes. Freedom Debt Relief has been operating since 2002 and is accredited by the American Association for Debt Resolution (AADR) and certified by the International Association of Professional Debt Arbitrators (IAPDA). They’ve helped over 850,000 people resolve more than $15 billion in debt.
3. What kind of debt can Freedom help with?
They handle unsecured debts, including:
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Credit cards
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Personal loans
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Medical bills
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Store cards
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Some private student loans
They do NOT work with:
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Mortgages
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Auto loans
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IRS tax debt
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Federal student loans
4. What is the minimum debt required?
You typically need at least $7,500–$10,000 in unsecured debt to qualify for their program.
5. How does the debt settlement process work?
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You stop paying your creditors.
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You deposit funds monthly into a dedicated settlement account.
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Freedom negotiates with your creditors after enough funds accumulate.
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They settle the debt for less than what you owe.
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You approve the settlement before payment is released.
The process usually takes 24–48 months depending on your ability to save.
6. How much can I save with Freedom Debt Relief?
On average, clients who complete the program reduce their enrolled debt by 45–60% before fees. After fees, net savings may be 20–30% depending on your specific case.
7. What fees does Freedom charge?
Freedom charges 15% to 25% of the enrolled debt amount, but only after a successful settlement is reached. No upfront fees are charged (in compliance with FTC rules).
8. Will this hurt my credit score?
Yes, debt settlement typically causes a temporary drop in your credit score because you stop making payments to creditors. However, many clients see gradual recovery after completing the program and resolving debts.
9. Does Freedom Debt Relief guarantee success?
No. Results vary by client. Some creditors may not agree to settle, and you must remain consistent with your monthly deposits. However, Freedom has thousands of successful settlements documented.
10. Can I cancel the program if I change my mind?
Yes. You are not locked in. You can cancel at any time without penalty. However, if you cancel after a debt has already been settled, you will still owe the associated settlement fee.
11. Is this service available in all 50 states?
No. Freedom is currently available in 40+ U.S. states. They do not operate in:
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CT
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GA
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HI
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IL
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ME
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NH
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NJ
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ND
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OR
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SC
(Since this list may change, please check their site or call to confirm availability in your state.)
12. What happens to interest and late fees during the program?
While enrolled, creditors may still charge interest and late fees until a settlement is reached. These costs are factored into settlement negotiations.
13. Is the forgiven debt taxable?
Yes, in most cases the IRS considers forgiven debt taxable income. Freedom recommends speaking with a tax advisor to understand your obligations.
14. What happens if I miss a monthly payment?
Missing payments can delay settlements or cause your account to be removed from the program. Consistency is critical to success.
15. Can I still use my credit cards during the program?
No. You must stop using credit cards that are enrolled in the program. Using them can jeopardize your eligibility.
16. Will I receive collection calls?
Yes. Because you’re not paying creditors directly, you may receive calls or notices. However, Freedom provides advice and support to help manage communications.
17. Can Freedom Debt Relief stop lawsuits or wage garnishment?
No, not directly. Debt settlement may reduce the chance of being sued, but it doesn’t guarantee protection. If you’re facing legal action, consult an attorney.
18. Who should avoid debt settlement?
You should probably avoid debt settlement if:
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You’re not behind on payments
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You can pay off your debt in under 2 years with budgeting
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You need to protect your credit score at all costs
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You primarily have secured debt (mortgage, auto loans)
Final Verdict
Freedom Debt Relief is a trusted, experienced player in the debt relief industry. With no upfront fees, a solid negotiation team, and thousands of satisfied clients, it’s a solid option for those struggling with unsecured debt. While it may not be the most boutique or personal solution, it’s certainly one of the most proven.
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
